MEMORANDUM OF SETTLEMENT BETWEEN MULLER & PHIPPS PAKISTAN (PVT) LTD AND MULLER & PHIPPS PAKISTAN (PVT) LTD EMPLOYEES’ UNION - 2015

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(Under the provision of the Industrial Relations Act, 2012 and the Rule framed there under)

NAME OF THE PARTIES

1. Muller & Phipps Pakistan (Pvt.) Ltd. Uzma Court, First Floor, Main Clifton Road, Karachi, hereinafter called the “Company”.

and

2. Muller & Phipps Pakistan (Pvt.) Ltd. Employees’ Union, and having been certified as Collective Bargaining Agent by National Industrial Relations Commission, for and on behalf of the workmen employed by the Company hereinafter called the “Union”.

REPRESENTING THE COMPANY

1. Mr. Nasuratullah Khan - General Manager Human Resource

2. Mr. Jawed Masood - Industrial Relations Coordinator

REPRESENTING THE UNION

1. Mr. Muhammad Sultan Khan - President

2. Mr. Adnan Hussain - Sr. Vice President, Karachi-CPD

3. Mr. Khursheed Ahmed - Vice President, Karachi North

4. Mr. Tariq Mehmood - Vice President, Rawalpindi

5. Mr. Mujahid Ali - Vice President, Faisalabad

6. Mr. Waheed Ahmed - Vice President, Multan

7. Mr. Altaf Khan - General Secretary, Peshawar

8. Mr. M. Islam - Add. General Secretary, Lahore-2

9. Mr. Ajmal Khan - Finance Secretary, Peshawar

10. Mr. Muhammad Shahbaz - Executive Member, Lahore-CPD

11. Mr. Akbar Ali - Executive Member, Mardan

Short Recital of the Case

Whereas the Union along with its letter dated: January 1, 2015 submitted to the Company a Charter of Demands in accordance with the provisions of the Industrial Relations Act, 2012 and the Rules framed under.

And whereas the Company under cover of its letter #. HRD/M&P/879/2014 dated December 29, 2014 also served a Charter of Demands on the Union (C.B.A).

And whereas pursuant to the aforesaid Charter of Demands, Industrial Dispute having arisen; a number of meetings were held between both the parties during the period extended up to May 14, 2015.

And whereas during the bilateral negotiations the Union pleaded inflation and rise in the cost of living as a basis and justification for the acceptance of their demands which fact was also recognized by the Company.

And whereas the Company and the Union inn full and final settlement of all their demands and claims raised or which could have been raised by the Union and the Company in the above referred to Charter of Demands and during the bilateral negotiations have settled all the disputes as per following Settlement.

NOW THEREFORE THIS SETTLEMENT HEREBY WITNESSETH AS FOLLOWS:

TERMS OF THE SETTLEMENT

The following has been mutually agreed upon between the Company and the Union.

1. BASIC PAY, HOUSE RENT ALLOWANCE AND CONVEYANCE ALLOWANCE

Keeping in view of inflation and the rise in the cost of living, all workers on payroll as on the date of the signing of this Settlement will be given an increase in their Basic Pay, House Rent Allowance and Conveyance Allowance w.e.f. January 1, 2015 or date of joining as the case may be, as per details given below:

a. BASIC PAY

SERVICE INCREASE
Up to 10 years Rs. 450/- (Rupees Four Hundred Fifty only)
10 years and above Rs. 1,300/- (Rs. One Thousand Three Hundred only)

b. HOUSE RENT ALLOWANCE (H.R.A)

From Rs. 1,725/- to Rs. 2,250/- per month (increase of Rs. 525/-)

c. CONVEYANCE ALLOWANCE (C.A)

From Rs. 995/- to Rs. 1,520/- per month (increase of Rs. 525/-)

All other existing terms and conditions related to above mentioned House Rent Allowance and Conveyance Allowance shall remain unchanged.

2. SPECIAL UP-COUNTRY DAILY ALLOWANCE

a. (Up-Country Deliverymen and Drivers only – with Night Stay)

The Company will give Up-Country Deliverymen and Drivers a Special Up-Country Daily Allowance and the same will be paid at the flat rate Rs. 285/- (Rs. Two Hundred Eighty-Five only) instead of Rs. 215/- (Rs. Two Hundred & Fifteen only) per actual days worked, when according to the tour program an over-night stay at the town away from their head-quarters/base town is involved.

b. (Up-Country Deliverymen and Drivers only – with Night Stay)

The Company will give to Up-Country Deliverymen and Up-Country Drivers a Special Up-Country Daily Travelling Allowance and the same will be paid at the flat rate of Rs. 205/- (Rs. Two Hundred and Five only) instead of Rs. 170/- (Rs. One Hundred and Seventy only) per actual days worked, when according to the tour program they are not required to make an over-night stay.

c. (Marketing Allowance – Local Deliverymen and Drivers only)

The Company will give Local Deliverymen and Drivers a Local Daily Allowance and the same will be paid at the flat rate of Rs. 400/- (Rs. Four Hundred only) per month instead of Rs. 365/- (Rs. Three Hundred Sixty-Five only) on actual days worked.

All other exiting terms and conditions in this connections shall remain unchanged.

3. HELPER TO THE DELIVERY STAFF

It has been agreed that an Allowance of Rs. 160/- instead of Rs. 140/- would be paid to the respective Deliverymen for delivered orders at more than 45 shops (irrespective of No. of Cash Memos) in case of Company’s Vehicle, and more than 38 shops (irrespective of No. of Cash Memo) in case of Contractor’s Vehicle.

However, in case a helper is provided subject to the availability, the allowance of Rs. 160/- would not be paid to the respective Deliveryman.

All other existing terms and conditions in this connection shall remain unchanged.

4. LATE WORKING ALLOWANCE

a. (Local Deliverymen and Drivers only)

The Company will give to Local Deliverymen and Drivers a Late Working Allowance for working late after normal working hours to complete the work assigned to them for the day and the same will be paid at the flat rate of Rs. 875/- (Rs. Eight Hundred Seventy-Five only) per month, instead of Rs. 750/- (Rs. Seven Hundred Fifty only).

With this payment, the Union and/or the workers concerned will have no further right to claim any additional payment whatsoever for working late after normal working hours.

The Deliverymen and Drivers will ensure that the work assigned to them for the day is completed without fails.

5. UNIFORMS, SHOES/SOCKS

a. The Company will continue to provide two sets of summer uniforms and two sets of winter uniforms consisting of shalwar and kameez every year to all the confirmed Deliverymen, Drivers, Packers, Peons, Gate Keepers, Chowkidars and permanent Sweepers.

It is further agreed that the cost per summer and winter uniform will be paid @ Rs. 900/- (Rs. Nine Hundred only) per set instead of Rs. 650/- (Rs. Six Hundred Fifty only). The total cost of four sets of uniforms will not exceed Rs. 3,600/- (Rs. Three Thousand Six Hundred only) in a year.

It is also agreed that the Company will arrange supply of stitched uniforms to the eligible workers through the Depots. The cost of cloth and the stitching, etc. of summer/winter uniform shall be within the above mentioned limit and the Company will not allow any additional increase over and above to the approved limit. One Representatives of Union (C.B.A) will accompany with Depot Manager for selection of cloth.

b. SHOES & SOCKS

The Company will continue to pay a sum of Rs. 500/- (Rs. Five hundred only) instead of Rs. 450/- (Rs. Four hundred fifty only) per annum, in lieu of shoes and socks to those workers who are entitled to uniforms.

If a worker/workers who have been provided with the uniform and have also been paid agreed amount for shoes and socks, report for duty without wearing the current uniform, the concerned Manager/Incharge will have the discretion to refuse to take him/them on duty on such days.

6. WASHING ALLOWANCE

The Company will continue the existing arrangement for getting the uniform washed at Head Office, Karachi. At other Establishments, the Company will pay Rs. 325/- (Rupees Three Hundred Twenty-Five only) per month instead of Rs. 280/- (Rs. Two Hundred Eighty only) per month Washing Allowance to those workers who are entitled to uniforms.

7. GRATUITY

The Company will continue to pay gratuity for 30 days in accordance with the Modified Gratuity Scheme, dated 11-04-1973. It is further agreed that the limit of maximum days of entitlement to the payment of gratuity will 440 days instead of 432 days.

8. LOAN FOR MOTORCYCLE

a. The Company will grant loan for the purchase of new motorcycle to (21) Twenty-One permanent workers instead of (18) workers every year to the extent of Rs. 40,000/- (Rs. Forty Thousand only). The Union and the Company will select (21) workers entitled to this loan. The concerned workers must have a minimum of ten years of continuous service to be entitled to this facility. The loan will be deducted in 40 monthly equal installments. The Road Tax, Insurance, Maintenance Charges, etc. will be borne by the concerned worker. The motorcycle will be registered in the name of the Company till the loan is repaid in full by the worker. The Company will disburse the loan of Rs. 40,000/- (Rs. Forty Thousand only) after the selected worker has deposited the balance amount required to purchase a new motorcycle a worker will be eligible to the motorcycle loan only once in service. Unpaid loan amount shall be adjusted against his legal dues in case retirement, termination of service, dismissal or death.

b. LOAN IN LIEU OF MOTORCYCLE

If a selected worker request in writing to allow him to utilize Rs. 40,000/- (Rs. Forty Thousand only) for any other purpose, instead of purchasing motorcycle, he will be paid Rs. 40,000/- (Rs. Forty Thousand only) as loan on the same terms and conditions for payment as mentioned in Clause-10(a), provided he has no outstanding loan from Provident Fund. The Provident Fund of such worker will be treated as a security for such loan is outstanding. In case such worker insists on loan from Provident Fund, the loan from Provident Fund would be granted only after the balance amount of the loan granted under the provision of this article is repaid.

Such worker will not be granted any other loan from the Company till the amount of Rs. 40,000/- is fully paid by him.

The workers will be required to execute an agreement and/or surety bond as per requirement of the Company from time to time.

This loan will be given to a worker only once during his service. Unpaid loan amount shall be adjusted against his legal dues in case of retirement, termination of service, dismissal of death.

9. INTEREST FREE LOAN OF SMALL AMOUNT

It is mutually agreed that the fund allocated for the interest free small loans will remain the same i.e. Rs. 80,000/- (Rs. Eighty Thousand only) the maximum amount of loan to a worker at a time will not exceed Rs. 4,000/- (Rs. Four Thousand only) and this loan will be given only to those permanent workers who have completed at least three-years continuous service. The workers who have not completed three-years continuous service are not entitled to avail this facility. This loan will be deducted in 10 equal monthly installments. It is also agreed that this loan will be given a worker only once during the tenure of this Settlement i.e. from 01-01-2015 to 31-12-2016.

10. TRANSFERS

a. The worker will be entitled to a one-time payment of Rs. 4,100/- (Rs. Four Thousand One Hundred only) instead of Rs. 3,800/- (Rs. Three Thousand Eight Hundred only) when the Company on its own discretion, transfers him from one city to another city.

b. However, it is agreed that workers will not be entitled to this Allowance if a transfer is made on their own request.

11. SPECIAL INCREMENT

It is agreed that the Workers who completed 15-years of service, 20 years of service and 25 years of service will be paid special increment as follows:

The above rates will be effective from January 1, 2015.

12. MERGER OF COLA’S

It is agreed that the existing amount of COLA’s being paid to various workers (maximum Rs. 475/-) will be merged in their existing basic pay.

It has also been agreed that the Union Representatives/workers will not raise any demand for payment of COLA’s in future which have been merged in their basic pay.

13. LEAVE ENCASHMENT

It is agreed that the Company will encash the Privilege Leave up to maximum of 30 days once in a Calendar year if so requested by the worker when Privilege Leave due to him 40 days (instead of 45 days) above days.

14. DURATION OF SETTLEMENT

It is agreed by the Company and the union that this settlement will remain in force and binding upon the parties and their successors for a period of two years commencing from January 1, 2015 and ending on December 31, 2016.

15. EFFECTIVE DATE OF BENEFITS

All benefits, facilities and terms of employment conferred under this settlement will be effective from January 1, 2015 unless and except as specifically provided otherwise.

16. FINALITY

a. It is agreed that the benefits under this Settlement is the total financial burden taken by the Company during the operative period of this Settlement and this Settlement has taken in view the anticipated increase in wages, the Cost of Living Allowance, Special Allowance or otherwise which may be allowed by the Government by any order or law during the operation of this Settlement and the same shall be set off against the benefits of this Settlement and only the difference, if any, after such set off/adjustment shall be payable to the workers and this condition forms the basis of giving benefits by the Company to the workers under this Settlement.

b. This Settlement is in full and final settlement of all the demands raised or could have been raised by the Union in the respective Charter of Demands, (attached as Annexure ‘A’ and Annexure ‘B’ referred to above) and/or raised during the course of bilateral negotiations. The demands not specifically mentioned in this Settlement but raised in the said Charter of Demands and also such demands and/or disputes not raised in the said Charter of Demands but raised during the course of bilateral negotiations will be deemed to have been settled, satisfied and/or withdrawn.

c. The Union undertakes and agrees that during the period this settlement is in force and effective, they will not raise and/or submit any demands of any nature and/or raised in the attached Charter of Demands, dated January 1, 2015 and/or raise or could have been raised during bilateral negotiations nor will the Union raise or submit any fresh and/or further demands having any direct or indirect financial bearing or implications on the Company in any form whatsoever.

17. DUPLICATION OF BENEFITS

The rights and benefits conferred herein are in modification of the corresponding rights and benefits, conferred if any, under the existing laws and/or previous settlements and practices and nothing herein shall be constructed as entitling the workers to claim dual benefits.

18. GENERAL

That in consideration of the financial and other benefits granted by the Company under this Settlement, the union: -

a. Agrees to undertake to keep industrial peace, cooperate with the Company in its efforts to increase efficiency and not to resort to any action involving curtailment of supply, indiscipline and inefficiency etc.

b. It is further agreed that if at a future date/time, any trade union either provincially registered or registered as an industry-wise trade union is declared to be a “Collective Bargaining Agent” if a new union is formed or any other trade union comes into existence or the Union loose its character of collective bargaining agent, the finality, validity and sanctity of this Collective Settlement shall neither be adversely affected nor shall it be challenged directly or indirectly by the workmen, in any manner whatsoever.

c. The company as a gesture of good will and in consideration of the Union arriving at a peaceful Settlement has agreed to make a one-time payment of Rs. 100/- (Rs. One hundred only) to all the permanent workmen on payroll of the Company on the date of signing of this Settlement.

19. THE BINDING PROVISION

It is also agreed that during the operation of the settlement, the Union and or any other succeeding C.B.A; whether industry-wise or Provincial shall not raise any demand(s) financial or otherwise, on the Company.

IN WITNESS WHEREOF THE PARTIES hereto have hereunto set their hands of this May 27, 2015.

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Memorandum of Settlement between Muller & Phipps Pakistan (Pvt) Ltd and Muller & Phipps Pakistan (Pvt) Ltd Employees’ Union - 2015

Start date: → 2015-01-01
End date: → 2016-12-31
Ratified by: → Other
Ratified on: → 2015-01-01
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Muller & Phipps Pakistan Ltd
Names trade unions: → 

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 450.0
Wage increase starts: → 2015-01

Once only extra payment

Once only extra payment due to company performance: → Yes

Extra payment for annual leave

Allowance for commuting work

Allowance for commuting work: → PKR 1520.0 per month

Allowance for seniority

Allowance for seniority after: → 15 years of service

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → No
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